While the vast majority of Illinois residents do not like the idea of planning for their own deaths, it is something that should not be overlooked. There is a lot of good that can come from creating an estate plan. Knowing one’s family and assets are protected can bring peace of mind. Unfortunately, according to a recently published article, most estate plans fail to work as their owners originally intended.
It is possible to take all of the right steps, add all the correct language and utilize all the tax strategies available to ensure one’s beneficiaries will get benefits from one’s death — rather than the government. Unfortunately, estate plans often fail, not because they were not written correctly, but because their beneficiaries were not prepared to receive instant wealth. All the planning in the world cannot make up for the human side of an estate plan.
Why is it that beneficiaries may not be prepared? There are those who simply lack the financial knowledge to really handle the receiving of instant wealth. These individuals may make poor decisions, which will likely result in them burning through their inheritances. There are also those individuals who may emotionally struggle when they receive instant wealth, again causing them to mismanage their newly acquired assets. Some people may have problems in both of these areas.
In order to ensure that one’s estate plan works the way one wants it to, it is necessary to make sure beneficiaries are prepared to handle what is coming their way. One way that this can be done is by teaching them how to properly manage their money. If that does not seem like an option, it may be possible to include specific instructions regarding how beneficiaries are able to access and use what is being left to them. An experienced estate planning attorney can assist Illinois residents in creating solid plans and offer advice on how to prepare one’s heirs so that the plan actually works as intended.